Intraprenurial Opportunities for Cigna

Overview
It is important to note, from the onset, that intrapreneurs are instrumental to the progress of any enterprise. This is more so the case given that they happen to be not only action-oriented, but also proactive and motivated. In essence, there exists no standard definition of intrapreneurship. This effectively mean that various definitions have been floated in the past in an attempt to define exactly whom an intrapreneur is. In the words of Gifford Pinchot III (as cited in Daykin, 2019), “intrapreneurs are employees who do for corporate innovation what an entrepreneur does for his or her start-up." This is the definition that has been embraced in this context. It therefore follows that in playing this role, I will be assessing the various intrapreneur opportunities that could be of benefit to Cigna. Following the identification of one specific opportunity, the impact of the said opportunity will evaluated with regard to not only the potential benefits to Cigna, but also the resources as well as level of effort needed.
An Assessment of the Various Capabilities and Limitations of Cigna
To a large extent, Cigna happens to have an expansive network that smaller competitors cannot easily replicate. The said network offers the company an impressive cost advantage. In addition to this, the company has built a comprehensive offerings catalogue and has managed to fashion itself as a one-stop shop for a wide range of insurance programs as well as plans. These happen to be some of the key strengths of the company. The company, however, faces a major threat in as far as its continued success is concerned. In this case, it is important to note that although the presence that the company enjoys in the market is largely enviable, it is not unassailable – and as a matter of fact, Cigna faces stiff competition from HMOs, PPOs as well as third-party administrators and larger players (Vourman et al., 2013). It therefore follows that the company ought to innovate if it is to remain relevant going forward. In so doing, the company would be well-placed to tap into the strengths that have been highlighted above – i.e. in as far as its experience with a comprehensive catalogue of insurance plans/programs as well as its expansive network are concerned.
Opportunity Identification
According to Prindle (2018), “many patients want alternative health care, but getting insurance coverage can be tough.” As the author further points out, complementary and alternative medicine (CAM) continues to be popular each passing day. In basic terms, CAM could be described as any kind of healthcare treatment option or practice that is considered non-conventional, and that is not part of the Western traditional medicine (Ruggie, 2004). Towards this end, there are a wide range of CAM services that are offered across the country. Some of the more common ones include, but they are not limited to; chiropractic care, acupuncture, massage therapy, naturopathy, homeopathy, etc. Not all of the above CAM services fall outside of insurance coverage. According to Prindle (2018), there are quite a number of insurance companies that cover chiropractic care and acupuncture.
Cigna should pioneer the coverage of additional CAM services. This more so the case given that available data clearly indicates that more and more Americas are becoming interested in complimentary alternative medicine. As a matter of fact, according to a survey by PEW Research, “about half of Americans report having tried some form of alternative medicine, such as herbal remedies, acupuncture, chiropractic treatment or energy therapies, at some point during their lifetime” (PEW Research, 2017). This is a huge market that Cigna should find ways of exploiting.
a) Relevance of Expansive Network
Already the company has an expansive network that is inclusive of over 700 accountable care programs, over 500 hospitals, and over 175,000 mental and behavioral healthcare programs (Cigna, 2020). If the company were to roll out coverage for CAM, it would be able to reach out to millions of customers spread across the nation. The customer base in this case would be instrumental in risk pooling – especially given that this is essentially a new frontier that the company is keen on conquering. It is important to note that risk pooling happens to be one of the most important insurance concepts. From a conventional perspective, this, as Ruggie (2004) points out, is more so the case given that “pooling risks together allows the higher costs of the less healthy to be offset by the relatively lower costs of the healthy, either in a plan overall or within a premium rating category” (79). In this case, millions of customers would be contributing to a common pool – which would be instrumental in the even spreading of risks (specifically from expensive CAM claims) among the said contributors.
b) Relevance of Comprehensive Offerings
It should also be noted that already, the company has a huge catalogue of offerings. It therefore follows that that company is skilled in the art of managing diverse programs and policies. To a large extent, the diverse plans make Cigna a one-stop shop of sorts for insurance as well as healthcare plans. This is a capability the company should tap into in seeking to exploit the opportunity highlighted in this case.
Potential Benefits
a) Viability
As it has been pointed out elsewhere in this text, half of all Americans have tried some type of CAM. Further, as a survey by PEW Research indicates, “about a fifth of Americans say they have tried alternative medicine instead of conventional medicine; and, roughly three-in-ten adults have tried alternative medicine in conjunction with conventional medical treatment” (PEW Research, 2017). Thus, the viability of the idea proposed is not in question.
b) Competitiveness
There is clearly a market that has been neglected and an opportunity ignored by the competition. Cigna ought to be the first mover on this front. In this case, the company will be able to refine and perfect its capabilities in this particular line of service. As a first mover in this category, Cigna will, thus, be able to gain a competitive advantage that will enable it to outpace the competition going forward.
c) Reputation as a Culturally Sensitive Enterprise
The world has essentially become a global village. Today, we live in a society that could largely be defined as cosmopolitan. In the practice of medicine, like in many other aspects of our contemporary society, there is need for cultural humility and tolerance. With most kinds of CAM being culture-based, Cigna will effectively be diverting the conversation towards cultural humility and tolerance. In so doing, it will likely benefit by having a reputation as a culturally sensitive enterprise.
Level of Effort/Required Resources
a) Infrastructure Costs
This being the rollout of a new undertaking, the company will spend significant resources in terms of; additional research, human capital, product development and marketing, operational support, etc.
b) Approach
In seeking to implement an undertaking of this nature, Cigna could embrace a case-by-case model. Here, the company would be reviewing requests for coverage by taking into consideration individual circumstances. In so doing, the company will need to closely cooperate with key stakeholders in healthcare to establish the viability of treatment alternatives.
Conclusion
Companies that seek to remain relevant in increasingly competitive business environments ought to be innovative and embrace change. One of the challenges that Cigna faces, as has been pointed out elsewhere in this text, is increased competition. It therefore follows that the company ought to extend insurance coverage to patients who are in pursuit of alternative healthcare in an attempt to stay ahead of the competition and cement its position in this particular realm. It should, thus, pioneer wider CAM coverage and achieve the ‘First Mover’ advantages on this particular front.
References
Cigna (2020). Company Profile. Cigna Corporation. Retrieved from https://www.cigna.com/about-us/company-profile/
Daykin, J. (2019). Intrapreneurship. Retrieved from https://www.forbes.com/sites/jordandaykin/2019/01/08/intrapreneurship/?sh=7fe58bf24ea3
Prindle, L. (2018). Your Guide to Alternative Medicine and Health Insurance. Retrieved from https://quotewizard.com/health-insurance/complementary-and-alternative-medicine-and-health-insurance
PEW Research Center (2017). Americans’ health care behaviors and use of conventional and alternative medicine. Retrieved from https://www.pewresearch.org/science/2017/02/02/americans-health-care-behaviors-and-use-of-conventional-and-alternative-medicine/
Ruggie, M. (2004). Marginal to Mainstream: Alternative Medicine in America. New York, NY: Cambridge University Press.
Vourman, I., Williams, C., & Cha, A. (2013). Cigna Strategic Report. Retrieved from http://economics-files.pomona.edu/jlikens/seniorseminars/Likens2013/reports/cigna.pdf